In anticipation of the summer heatwave, Egypt is seeking to secure its energy. Cairo announces the suspension of all its exports of liquefied natural gas (LNG) from May 2024. The country will even have to import some.
Daily power cuts have started again, they are expected to increase as summer approaches. Because for several years, heatwave episodes challenge the operation of Egyptian power plants. LNG exports are therefore suspended. This represents around seven and a half million tonnes of liquefied natural gas, around 70% of which is exported to Europe.
European concern
The European markets, therefore, are observing the Egyptian strategy with some concern. The country announces that it will again import LNG, a first in six years. To import efficiently and quickly, a floating storage and regasification unit will be deployed at sea by June.
A new price increase?
This risks increasing the pressure on LNG supplies, which could lead to a further rise in prices in Europe. But’Egypt has no choice and must increase its energy production. The country can rely on the gigantic Zorh deposit off the coast of Port Said in the Mediterranean Sea. A deposit estimated at 850 billion cubic meters of natural gas. New well drilling is planned starting this year.
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